Rewards are the credit card companies' way of getting you to use their cards. They offer lots of different points, rewards and frequent flyer miles to reward you for using their card. Each bank offers different rewards. The best thing to do is to compare cards to see which one has the rewards that you are interested in.
The cash back rewards credit card is the way of you bank say thank you. They give you back some money on every purchase you make. Some of them start from writing you 25 or 50 dollar check after you make a first purchase. Then they keep on paying you a percentage from every purchase you make, usually its from 1% to 3%.
Point rewards is another way credit card companies reward you for using their card. Each bank offers different points and different rate. Some reward extra points on your first purchase and points for other things like buying gas with the credit card, buying groceries and prescription drugs: usually all purchases that get you points. You may heard of short-term promotions on the radio or TV, when large retail stores give you double of triple rewards for the purchases made during any given weekend. Once you earned enough points, you can redeem them for gift cards, collectibles or check.
For people that travel a lot, airplane companies offer credit cards with frequent flyer miles. When you make a purchase with the credit card you earn a certain number of miles for each dollar you spend. When you have earned enough miles you can take a trip to wherever you want to go either for business or pleasure. When you are applying for a credit card with frequent flyer miles, you need to make sure that you can redeem your points with no worries and blackout dates. You also need to pay attention that you can fly wherever you want with no any kind of restrictions. Frequent flyer miles could save you a lot for that family vacation.
To help you choose the card you need, try to think of what do you spend your money on. For example, if you have relatives in Alaska and visit them a lot, it might make sense to apply for Alaska Airlines credit card in order to accumulate points for every time you buy a ticket from this company. It could be that every third trip will be free or for a very low price! Think of applying for a gas points card if you spend a lot of time in your vehicle. Think about hardware store points card if you are a constructor.
All these rewards are great, but have to be careful and do not spend too much money in order just to earn enough miles for the trip for two on Bahamas. The truth is that if you had saved the money you spent on the spending spree you probably could have paid for the trip in the first place. This is the kind of mindset that the credit card company is hoping they can get you into because even though they may give you two miles for every dollar you spend they are making a lot more money than you think. Not to mention how much money you need to spend using this credit card to pay off a family vacation. No matter what you do with your credit card you have to act responsibly.
Reward Points are available on a number of Australian credit cards. Please see below for a full list:
St.George Credit Cards
Comm Bank Credit Cards Rewards
ANZ Rewards Credit Cards
Citibank Credit Cards
Thursday, July 31, 2008
Wednesday, July 30, 2008
How to use your Credit Card Reward Points
Competition among credit card companies is a great advantage for consumers. Credit card rewards are made bigger and better by credit card issuers to make sure that consumers would choose them over their competitors. How can you use your credit card points effectively and get the most out of your rewards credit cards?
The first thing to consider would be what type of rewards credit card do you currently have? If you're still on the process of selecting a rewards credit card, which one should you choose?
Because rewards credit cards come in a variety of classes, it is best to choose the one that best suits your lifestyle. For instance, there are travel rewards credit cards, gas rewards credit cards, or cash rewards credit cards. You'll be able to get the most benefit if the type of rewards credit card you have is that fits your needs.
Travel Rewards Credit Cards
Travel Rewards Credit Cards are especially designed for people who frequently travel. Whenever you use your credit card for purchasing, you automatically receive points that are equivalent to travel mileage points. The minimum mileage points you need to collect in order to qualify for a free travel will depend on the credit card issuer. Usually, credit card companies have partnership with an airline that sponsors free travel tickets. Thus, you may consider getting the Travel Rewards Credit Cards that is affiliated with the airline you must often fly with.
Gas Rewards Credit Cards
If you're frequently on road trips, you can get the best deals out of gas rewards credit cards. Gas Rewards Points are also collected each time you make a purchase using your credit card. These points allow you to get full tanks of gas at no charge at affiliate gas stations. Imagine how much money you'll save in a month if you often get full gas tanks for free.
Cash Rewards Credit Cards
Most people prefer to get cash rewards credit cards. Usually, you'll be given a point for every dollar you spend on your credit card. However, some credit card issuers give 2 points or more for every dollar spent on the card. You can use these points to make new purchases or these points can be added on your credit. Some credit card companies have their own exclusive online store where customers can shop to redeem their points.
Choose Wisely
Make sure that you will be able to use the points you'll be collecting. For example, even if you earn a free travel rewards, what if it includes restrictions, or what if you can only claim it for a limited time period? Be sure to check out all the terms and conditions that apply when claiming the reward. If you don't, the rewards you earned may simply be thrown out the window. Also, make sure that the credit card allows unlimited time for collecting points. If not, then you'll always be trying to earn enough points in time which is a very risky way of using your credit card.
Lastly, see to it that you'll be paying off your balances before the due date ends. Otherwise, you may end up paying for very high interest rates which defeats your purpose of purchasing to earn rewards. Also, some credit card issuers disqualify a card holder who has an outstanding balance in their account.
The first thing to consider would be what type of rewards credit card do you currently have? If you're still on the process of selecting a rewards credit card, which one should you choose?
Because rewards credit cards come in a variety of classes, it is best to choose the one that best suits your lifestyle. For instance, there are travel rewards credit cards, gas rewards credit cards, or cash rewards credit cards. You'll be able to get the most benefit if the type of rewards credit card you have is that fits your needs.
Travel Rewards Credit Cards
Travel Rewards Credit Cards are especially designed for people who frequently travel. Whenever you use your credit card for purchasing, you automatically receive points that are equivalent to travel mileage points. The minimum mileage points you need to collect in order to qualify for a free travel will depend on the credit card issuer. Usually, credit card companies have partnership with an airline that sponsors free travel tickets. Thus, you may consider getting the Travel Rewards Credit Cards that is affiliated with the airline you must often fly with.
Gas Rewards Credit Cards
If you're frequently on road trips, you can get the best deals out of gas rewards credit cards. Gas Rewards Points are also collected each time you make a purchase using your credit card. These points allow you to get full tanks of gas at no charge at affiliate gas stations. Imagine how much money you'll save in a month if you often get full gas tanks for free.
Cash Rewards Credit Cards
Most people prefer to get cash rewards credit cards. Usually, you'll be given a point for every dollar you spend on your credit card. However, some credit card issuers give 2 points or more for every dollar spent on the card. You can use these points to make new purchases or these points can be added on your credit. Some credit card companies have their own exclusive online store where customers can shop to redeem their points.
Choose Wisely
Make sure that you will be able to use the points you'll be collecting. For example, even if you earn a free travel rewards, what if it includes restrictions, or what if you can only claim it for a limited time period? Be sure to check out all the terms and conditions that apply when claiming the reward. If you don't, the rewards you earned may simply be thrown out the window. Also, make sure that the credit card allows unlimited time for collecting points. If not, then you'll always be trying to earn enough points in time which is a very risky way of using your credit card.
Lastly, see to it that you'll be paying off your balances before the due date ends. Otherwise, you may end up paying for very high interest rates which defeats your purpose of purchasing to earn rewards. Also, some credit card issuers disqualify a card holder who has an outstanding balance in their account.
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